If you get a PS2, just buy a component cable for it. Then switch the options to output over component. If the game doesn't output to 480p, your tv should be able to upscale it. It still looks better than composite regardless.

Is it wrong that when I look at Burgles avatar I get a little aroused?

I should probably get that checked out........

You can also get a used 20gig HD at Gamestop for about $50.  It's been reformatted to be like new from factory.  If a return policy is what you want you get a free 30 day warranty or you can buy a 2 year deal for what amounts to less than $10.

That's better then what you'll find at wal-mart

1. There's no need for that -- consider this your first and only warning.
2. About Ebay, it is possible to have bad experiences even with people with great reputations.  I bought some Heroclix a while from someone who had a near perfect reputation but in the timespan of a week he became one of the worst sellers on Ebay and was eventualyl banned a few weeks later.  I've had mostly good experiences with Ebay, but it is possible to have bad experiences and some people are rightfully worried about not seeing their product firsthand (been screwed there too).
3. About Ebay, it is possible to have a bad experience but it's also easy to gave a great experience.  There are deals to be had everywhere and as long as you're careful you're likely to have a good deal.

Don't buy a 360. There are lots of hidden costs, like with the harddrive. And you can play all the exclusives on a gaming PC if you have one.

Wal-mart has been owned repeatedly in this thread....

I do have a PC but like I said I'm looking for a console I can play in bed which is also why the Wii is not in consideration.

What stops you from playing with your Wii in bed?

1) Not everyone trust online shopping. [Some people are still afraid of planes, and they have reason to be]

2) The man simply didn't know about the HDD's of the 2 consoles and for a second was interested in one until he learned about how much it would cost him in general and if it was all worth it for him. For this you would have to remember this:
"You and the OP are 2 different people!!" What sound good to you may not be the same to some one else.

3) From what I read early in this thread he seemed to have made up his mind that he doesn't want to buy the other console, and asked about a different one... so I don't know why people bothered posting about "this cost that now, this price was changed, it will only cost this much in total if you buy it here using that." If you don't want to just help him with his question then leave the thread alone!!!!

Now as for what the OP asked, not sure what you can do about ps2 upscaling, I would just go with getting a BC ps3 and use it's upscaling capabilities. From what I understand getting a device that can upscale a ps2 systems seems pricey.

I hope encouraging piracy is banned.  Mods?